Cuba: Potential Market or Continuing Menace?

Passage of the Trade Sanctions Reform and Export Enhancement Act of 2000 allows U.S. firms to legally export their agricultural products to Cuba and travel there for business purposes. From modest beginnings of $140 million in 2002, U.S. exports grew to $387 million in 2004, peaking at $694 million in 2008. U.S. exports then fell to $456 million in 2012, $215 million in 2016 and $157 million in 2020 (Figure 1). Frozen poultry, soy products and corn have accounted for virtually all U.S. export in recent years. Remittances, exports and tourism are major hard currency earners for Cuba and determine market potential, and the success of U.S. exports. Market potential is hampered by strict U.S. regulations on financing and Cuban requirements to export through the state trading entity, Alimport. Cuba has the potential to be a $1.0 billion market absent government restrictions and more open trade between the two countries. Competition is keen and growing as the U.S. presence in the market has declined.

Rosson, Parr. “Cuba: Potential Market or Continuing Menace?Southern Ag Today 1(49.4). December 2, 2021. Permalink